Located on the Iberian peninsula in southwest Europe between Spain and the Atlantic Ocean, Portugal covers an area of 92,000 square kilometers. Its population of 10.7 million ranks it as the 10th most populous country in the European Union. Portugal has become a diversified and increasingly service-based economy since joining the European Community in 1986. Over the past two decades, successive governments have privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. Economic growth had been above the EU average for much of the 1990s, but subsequently subsided. GDP per capita stands at roughly two-thirds of the EU-25 average. Challenges faced by Portugal's economy, according to the Organization for Economic Cooperation and Development, include strengthening structural reform, taking advantage of globalization opportunities, instituting labor market reforms and upgrading competencies of human capital. Key industries include tourism, which takes advantage of Portugal's relatively warm climate and location on the shores of the Atlantic Ocean, software, textiles, footwear and paper.